Quick Take | Asian Paints Q3 review: Strong double-digit volume growth drives earnings

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26 Aug, 2025 12:21

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Sachin PalMoneycontrol Research

Asian Paints reported a strong set of numbers for the third quarter of the current fiscal year.  The topline growth of 24 percent was aided by a combination of high double-digit volume growth in the domestic decorative business segment and recent price hikes.

The company reported fourth successive quarter of double digit volume growth on the back of strong consumer demand during the festive season.

Operating profits came in 14 percent higher and was aided driven by higher topline. Input costs pressures kept the operating margins under pressure on a yearly basis. However, recent price hikes along with softening crude prices led to margin improvement on a sequential basis.

While the domestic decorative business drove the overall topline, the industrial paints business witnessed good growth in both the protective coatings and powder coatings segment. The Automotive coatings and international business, however, reported a subdued quarterly performance due to host of factors.

The company has a dominant market share in the industry and has demonstrated its pricing power through successive price hikes in recent months. Going forward, we anticipate steady growth in earnings along with a recovery in margins in coming quarters.

Overall, Asian Paints (CMP: 1,396 and market cap: 1,33,866 crore) reported a strong set of earnings during the quarter and the stock trades at premium valuations which limits the upside from a near-term perspective.